What Factors Are Driving the Trend of Reshoring

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The Answer is When the drawbacks of offshoring outweigh its cost advantages, MNCs may move operations back to the home country, a practice known as reshoring.
First, changes in relative costs contribute to the trend of reshoring. Increasing labor, utilities, and transportation in some traditional low-cost countries have offset the cost disadvantages of the U.S.
Second, changes in customer demand push companies to increase local responsiveness, and reshoring allows some companies to be faster and more flexible, have better control over quality and intellectual property, and better serve U.S. customers' needs.
Third, technological advancement in manufacturing has made reshoring more feasible. Automation and flexible manufacturing enable companies to cost-efficiently perform low-volume/high-mix production.
Fourth, in order to attract manufacturing jobs, local governments have offered generous incentives, and labor unions have also made compromises on wages.

What Factors Are Driving the Trend of Reshoring

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What Factors Are Driving the Trend of Reshoring

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